How much do you think the average NFT creator makes? Do you assume they make millions of dollars from the popularity of their non-fungible token (NFT)? Or do you assume they don’t make very much since most NFT tokens don’t have high transaction volume?
It is no longer a French concept that billions of dollars are being circulated in NFTs Space Monthly. Different artists are now triggered with this huge amounts of revenue that circulate in the space, and they are now looking for ways to turn their traditional artwork into NFTs as well as create exclusive art work for use on Blockchain.
In this post, we will answer the question: how much do NFT creators make?, show you how they earn such an amount, and most importantly, show you how to begin minting your own NFTs.
Table of Contents
A brief history of NFTs.
In 2017, the world was introduced to CryptoKitties—the first successful application of non-fungible tokens (NFTs). Since then, the NFT market has exploded, with creators earning millions of dollars from selling digital art, music, and even virtual real estate. If you’re wondering how much NFT creators make, read on to learn more about their average earnings.
What are Non-Fungible Tokens?
Non-fungible tokens (NFTs) are digital assets that are unique and cannot be replaced. They are often used to represent items in video games or digital art. NFTs can be bought, sold, or traded like other cryptocurrency assets. Some people use them as investments, while others collect them for fun.
Why are non-fungible tokens important?
Non-fungible tokens Known as NFTs, are digital assets that are unique, not interchangeable, and built on a blockchain to track their ownership and transactions. This means that each NFT can be sold or traded individually, unlike fungible tokens, which are identical and can be exchanged for other tokens of the same type. Because of the immutability, NFTs have been popular in recent years as they serve as a way to monetize digital art, music, and other items without having to face the issue of duplication.
How Do People Make Use of NFTs?
There are a few different ways that people make use of NFT. Some people take it as an investment, hoping for it to appreciate in value over time, while others use it as a form of digital art, collecting pieces that they enjoy or that hold meaning for them.
Also, some people use NFTs as a way to show support for a project or to represent their membership in a community. And finally, some people just have fun with them, using them in games or other online activities.
How much Do NFT creators Make?
If you are thinking of beginning your journey in the world of NFTs and you are curious about how much you can make as a creator, then this section is for you.
There are different platforms that allow artists to mint and monetize their digital assets. Popular NFTS marketplaces are OpenSea, SuperRare, and Rarible. These marketplaces help you encode your digital assets on a blockchain so that they will be immutable. Etherem is a popular blockchain on which these NFT marketplaces operate. Any transaction that goes on on any blockchain is validated by miners, and these miners are rewarded for that. So for minting your NFTs, there are some gas fees associated with it.
There are two major ways in which NFT creators make money. Let’s take them one-by-one.
Recommended: How to Make Money With NFTs
1) Sales
NFT creators make money by listing their NFTs for sale. When you sell your NFTs on the marketplace, you will receive a profit just like when you sell your artwork offline. The ownership of such an NFT will be transferred from your wallet to that of the buyer.
The amount you sell your NFT is determined by the minimum price you set for it and the maximum bid the buyers place in your NFTs auction.
There is no exact price at which an NFT is sold, It depends on how appealing your work is and how you market it. Though some NFTs can be as low as $100, many NFTs are worth Millions of dollar.
The marketplace fees is factor to consider when determining the value of your NFT. Popular marketplaces charge 2–10% fees on your NFT sale price and also charge minting fees.
When the NFTs are sold, the buyer or seller will pay the gas cost under the following conditions:
- A buyer pays the gas cost if he buys the NFT at a fixed price.
- The seller pays the gas cost if he accepts an offer on an NFT, like in a bid.
2) Royalties
In the process of listing your NFT for sale on the marketplace, you can set a royalty fee for passive monetization of your work. A royalty is a percentage of your NFTs’ resale price that you will earn as the original creator.
Most NFT creators usually set their royalty fee at around 5–10%. although some set it higher than this.
Considering the fact that the value of NFT keeps increasing every day, the royalty the creator gets after their NFTs are resold keeps increasing as well. For instance, if your NFT is resold for $5000, you could earn a royalty of about $500, which is good.
What is the Average price of NFTs?
Although there are plenty of NFTs sold for millions of dollars, the average sale price of NFTs remains relatively low, at around $1000+. This is because most NFTs are still sold as low as $100 or less.
To be able to sell your NFTs at or more than the average price, you must make sure your work is appealing enough to potential buyers and also you need to put effort in promoting it.
How Much Does It Cost To Create An NFT?
Depending on the network type you have chosen, there are different charges associated with minting NFTs. You can mint and list your NFTs on Opensea for free if you use polygon network.
However, if you are minting for the first time and utilizing Ethereum as your network type, you will need to pay an initialization cost. This typically costs between $100 and $300.
Recommended: How Much It Cost To Create NFT On OpenSea.
How much profit have you made by selling NFTs?
In well-known marketplaces like NFTHive and Atomic Hub, you can buy and sell NFTs for a profit. Some NFTs are very expensive and can sell for 15 ETH or more, such as CryptoPunks, Meebits, and CryptoKitties. However, in 2017, the floor costs for these NFTs were significantly lower.
You would want to buy NFT early and sell later if you wanted to profit from them. Veefriends, for instance, started at 0.5 ETH (floor) and are difficult to acquire below 3 ETH.
Your plan determines how much money you’ll make. It can be profitable to purchase low, hold, and sell at the height of popularity.
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